Natural Gas Down Trend, Support At 232-230 Levels
CommodityOnline | Aug 25, 2014 05:42AM ET
Trading consistently above 244 levels would lead towards the strong resistance at 252 levels, and then finally towards the major resistance at 258 levels.
MCX Natural Gas Sept. as seen in the weekly chart above has opened the week at 241.10 levels and as expected in the starting of the week prices corrected sharply towards the weekly low of 231.60 levels. In the mid of the week prices could not able to breach the support zone of 232 – 230 levels and bounced back sharply from the lower levels towards the weekly high of 244 levels. In the end trading session of the week prices again corrected sharply from the higher levels and finally closed 2.56% lower at 236.10 levels.
For the next week we expect Natural Gas prices to find support in the range of 232 - 230 levels. Trading consistently below 230 levels would lead towards the strong support at 225 levels and then finally towards the major support at 222 levels.
Resistance is now observed in the range of 242 - 244 levels. Trading consistently above 244 levels would lead towards the strong resistance at 252 levels, and then finally towards the major resistance at 258 levels.
MCX / NYMEX Natural Gas Trading levels for the week
Trend: Down
S1 - 230 / $ 3.75 R1 - 242 / $ 3.95
S2 - 225 / $ 3.60 R2 - 252 / $ 4.10
Weekly Recommendation: Sell MCX Natural Gas September between 242 – 244, SL – 252, Target – 230 / 228
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